OUTLOOK FOR MEAT ANIMAL PRICES 

 By L. F. St Ice, Extension Marketing Specialist 



The Bureau of Agricultuaral Economics makes the following significant points 

 with respect to the outlook for meat animal prices in 19^6 and later years: 



In 19^6 supplies of low-grade "beef may exceed demand at present prices. 

 Therefore, withdrawal of the subsidies now being paid to slaughterers on this grade of 

 cattle probably would be fully reflected in lower prices to producers. For the upper 

 grade of cattle, the demand and supply situation is expected to be such that withdrawal 

 of the subsidy will be partly absorbed by the producer if the ceiling prices on beef 

 are removed. Also, prices of the lower grade cuts of pork, veal and lamb may decline 

 from present levels in periods of peak supply. Hog prices are expected to average 

 nearly as high in 19^ as in I9U5 if present ceilin^i^s and subsidies are continued , but 

 are expected to decline in the latter psurt of 19^6 if the subsidy to hog slaughterers 

 is removed. As meat production is expected to continue at a high level for sevearal 

 years, variations in consumer incomes will be a major factor affecting meat animal 

 prices in the immediate postwar years (see chart). 



PRICES RECEIVED BY FARMERS FOR MEAT 

 ANIMALS AND NATIONAL INCOME PER CAPITA, U.S., 1910-19^5* 



Income 



per 



capita 



$1,000 



250 



• r \ 



I \ 



rices of meat animals 

 (Index numbers, 1909-1^»100) 



atlonal income 

 per capita 



-.V 



O r^ I I , I . ■ I I . i 1', I r t — L_»_j — 1 — i.. l . i 



1910 1915 1920 1925 1950 



I 



t I I 1 ■ ■ ' ' ' -* — 1—1 — I 



Index 



of prices 



(percent) 



200 



IpO 



\ 



100 



I I 



r^ 



1935 19^0 19^5 1950 



50 

 



*PrelimineLry indications, Bureau of Agricultural Economics, United States Department of 

 Agriculture. 11/6A5 



